The Supreme Court has set aside the verdict of Bombay High Court, which had allowed eight bulk drugs to be out of the price control on Friday. The Court has asked the pharmaceutical companies who produce salbutamol, ciprofloxacin, norfloxacin, theophylline, cloxacillin, sulphamethaxozele, trimethophrim and cefadroxyl to remit the overcharged amount with the government.
The companies would have to pay 50 per cent of the excess amount calculated on the basis of the difference between the market price and the government-notified price within a month. Delivering its verdict on the appeal made by the government, the SC wanted the High Court to re-examine its decision and check the drugs on a case to case basis to identify the ones that are to be included in the government’s scheduled list of price controlled drugs.
The inclusion of these drugs in the first schedule of the Drug Price Control Order 1995 was challenged by Cipla Ltd, Okasa Pharma Ltd, Unichem Laboratories, Ranbaxy Laboratories and USV Ltd.
While the government argued that the companies were not adhering to the ceiling price and were overcharging the consumer, the companies successfully drove their point in Mumbai HC to show that these formulations were outside the ambit of the price control. With the recent directive of the SC, the companies are now left with no option but to pay the excess amount charged during the period.